"Layer 2" TAG

Examining the Significance of Reddit’s New Community Points Program
  • research
Last month, the social network platform Reddit announced its new ‘Community Points’ program, aiming to leverage cryptoeconomics for community engagement. The points are represented by ERC20 tokens and can be used to reward user contributions on particular subreddits, a type of Reddit sub-forum dedicated to specific topics. According to the announcement, users will be able to...
Examining Base Layer Security and Token Value
  • research
In an earlier dispatch, we referenced Chris Burniske and Placeholder’s work on quantifying smart contract demand via the aggregate amount of fees paid to validators or miners. While illuminating in its own right, it led our research team to consider the long-term resilience of such a fee market on Ethereum and how this relates to a...
Overview of Ethereum Layer 2
  • research
Key Takeaways Given limited transaction capacity available on the Ethereum base blockchain, a variety of in-development Layer 2 scaling techniques aim to increase throughput by conducting transaction activity off-chain. State Channels have fast finality times and privacy features, yet present operational challenges surrounding node liveness and are difficult to generalize beyond payment use cases. Sidechains...